Friday, December 4, 2009
Th recent stories involving problems in the marriage of Tiger Woods have referred to the type of premarital agreement he entered into with his wife. The agreement apparently provides that, if the marriage lasts 10 years, his wife gets a specified amount (reportedly $20 million) in the event of a later divorce. This is an increasingly common type of premarital agreement signed when one partner is much richer than the other at the time of the marriage.
Premarital agreements can be amended during marriage; it has been reported that, in light of recent events, Mr. Woods has made a much more generous financial offer to his wife if she will agree to refrain from filing for divorce. The offer reportedly involves a substantial initial payment (reportedly $5 million) if she does not file for divorce immediately and a more substantial payment if the marriage endures for at least a few more years.